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KBH vs TMHC
Which Stock Would AI Choose? KB Home (KBH) vs. Taylor Morrison Home (TMHC) Stock Comparison
Key Takeaways
- KBH and TMHC are both major U.S. homebuilders, but they now occupy fundamentally different positions: TMHC has been acquired by Berkshire Hathaway and delisted, while KBH remains an independent publicly traded company.
- TMHC delivered stronger gross margins (approximately 23% adjusted in fiscal 2025) compared to KBH (roughly 17–19%), reflecting different product mixes and geographic exposures.
- KBH has been exceptionally aggressive with share repurchases, returning over $538 million to shareholders in fiscal 2025 and reducing its share count by approximately 11%.
- Both companies faced headwinds from elevated mortgage rates and affordability pressures, with net orders declining year over year at both builders through late 2025 and early 2026.
- For investors seeking exposure to a still-public homebuilder trading below book value, KBH may present a different risk-reward profile than TMHC did before its acquisition.
Introduction
Comparing KBH (KB Home) and TMHC (Taylor Morrison Home Corporation) offers a compelling lens through which to examine the U.S. homebuilding sector. Both companies are well-established national builders with multi-decade operating histories, yet their trajectories diverged dramatically in recent months. This stock comparison is particularly relevant for investors and traders evaluating relative performance, market positioning, and the implications of sector consolidation. While TMHC recently entered a transformative acquisition by Berkshire Hathaway, KBH continues to navigate public markets independently. Understanding how these two builders compare across profitability, strategy, and market sentiment can inform broader perspectives on the homebuilding industry.
KBH Overview and Recent Performance
KB Home, headquartered in Los Angeles, California, is one of the largest and most recognized homebuilders in the United States, with operations spanning 49 markets across Arizona, California, Colorado, Florida, Idaho, Nevada, North Carolina, Texas, and Washington. The company primarily serves first-time, first move-up, and second move-up buyers, emphasizing personalized homes at transparent price points. In its fiscal 2025 (ended November 30, 2025), KB Home delivered 12,902 homes and generated $6.24 billion in revenue. Net income reached $428.8 million, with diluted earnings per share (EPS) of $6.15—down 27% year over year as the broader housing market contended with elevated mortgage rates and affordability constraints.
Recent market activity has shown KBH shares under pressure, trading around the $56–$57 range in recent weeks—below the company's book value per share of approximately $61.75. The housing gross profit margin contracted to 17.0% in the fiscal fourth quarter, reflecting price reductions, higher relative land costs, and geographic mix shifts. Net orders declined 10% year over year in the same period, while the cancellation rate ticked up to 18%. On a positive note, KB Home has been a standout in capital return: the company repurchased 9.4 million shares for $538.5 million in fiscal 2025, with a $1.0 billion authorization now in place. Its balance sheet remains solid, with $1.43 billion in total liquidity and a debt-to-capital ratio of 30.3%.
TMHC Overview and Recent Performance
Taylor Morrison Home Corporation, based in Scottsdale, Arizona, operates as a leading national land developer and homebuilder with a diversified portfolio spanning entry-level, move-up, and resort lifestyle segments under the Taylor Morrison and Esplanade brands, plus a build-to-rent platform called Yardly. For the full year 2025, TMHC delivered 12,997 homes at an average price of approximately $597,000, generating $7.76 billion in home closings revenue. Reported net income was $783 million, or $7.77 per diluted share, while adjusted net income reached $830 million, or $8.24 per diluted share—significantly higher per-share profitability than KBH.
TMHC's adjusted home closings gross margin of 23.0% for fiscal 2025 meaningfully outpaced KBH, supported by the company's higher price point, resort lifestyle segment strength, and disciplined cost management. Its SG&A (selling, general, and administrative expenses) ratio improved 40 basis points year over year to 9.5%. However, the company was not immune to macro headwinds: net orders dipped, spec inventory remained elevated at nearly 3,000 unsold homes at year-end, and management guided to approximately 11,000 closings for 2026, down from 2025 levels. The defining event for TMHC in recent months was the announcement on May 31, 2026, that Berkshire Hathaway would acquire the company for $72.50 per share in cash—a 24% premium—valuing the equity at approximately $6.8 billion. Shareholders approved the merger in July, and the transaction closed on July 24, 2026, delisting TMHC from the NYSE (New York Stock Exchange).
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Head-to-Head Comparison
The most striking contrast between these two homebuilders is their corporate status: TMHC has been taken private by Berkshire Hathaway, while KBH remains publicly traded. This distinction has profound implications. TMHC shareholders received a guaranteed all-cash exit at $72.50 per share, locking in a premium that removed market risk. KBH shareholders, by contrast, remain exposed to housing market volatility, interest rate uncertainty, and sector rotation.
On operational metrics, TMHC was the more profitable builder. Its adjusted gross margin of 23% for fiscal 2025 was roughly 400–600 basis points above KBH's comparable figure, and its net income of $783 million exceeded KBH's $428.8 million by a wide margin. TMHC's higher average selling price (approximately $597,000 versus KBH's $481,400) reflects a greater weighting toward move-up and resort lifestyle buyers, who tend to be less rate-sensitive than entry-level purchasers. KBH's business skews more heavily toward first-time and first move-up buyers, making it more vulnerable to affordability pressures when mortgage rates rise.
Capital allocation strategies also differed. KBH returned over $538 million to shareholders through buybacks in fiscal 2025 alone—roughly 11% of shares outstanding—while TMHC repurchased $381 million. KBH's shares trade below book value, which may appeal to value-oriented investors, though it also signals the market's skepticism about near-term earnings power. TMHC's liquidity position was stronger at $1.8 billion versus KBH's $1.43 billion, and its net debt-to-capital ratio of 17.8% was notably lower than KBH's 30.3%.
Geographic exposure adds another layer of differentiation. KBH's footprint is concentrated in the West Coast, Southwest, and Southeast, with notable exposure to California and Texas. TMHC's broader national platform includes strong positions in Florida, Arizona, and the Carolinas, with its Esplanade resort lifestyle communities providing a differentiated growth avenue that KBH does not replicate at the same scale.
Tickeron AI Verdict
Based on observable factors such as trend consistency, operational stability, and relative positioning, a Tickeron AI-driven analysis would likely have favored TMHC during its final months as a public company. TMHC's superior gross margins, stronger return on equity (13%), lower leverage, and diversified consumer mix provided a more resilient foundation amid housing market uncertainty. The Berkshire Hathaway acquisition at a 24% premium served as a powerful external validation of that quality. With TMHC now delisted, the relevant question shifts to KBH. The stock trades at a discount to book value and offers a 1.76% dividend yield alongside aggressive buybacks, which could attract AI models oriented toward mean reversion and value signals. However, margin compression, declining orders, and a lower backlog suggest near-term earnings headwinds that may give trend-following models pause. On balance, while TMHC likely scored higher on quality and stability metrics prior to its acquisition, KBH may now present a more nuanced opportunity—one requiring careful evaluation of whether its discounted valuation adequately compensates for the cyclical risks ahead.
Disclaimer
The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer.
To compare these two companies we present long-term analysis, their fundamental ratings and make comparative short-term technical analysis which are presented below. The conclusion is KBH is a StrongBuy and TMHC is a Buy.
Long-Term Analysis
It is best to consider a long-term outlook for a ticker by using Fundamental Analysis (FA) ratings. The rating of 1 to 100, where 1 is best and 100 is worst, is divided into thirds. The first third (a green rating of 1-33) indicates that the ticker is undervalued; the second third (a grey number between 34 and 66) means that the ticker is valued fairly; and the last third (red number of 67 to 100) reflects that the ticker is undervalued. We use an FA Score to show how many ratings show the ticker to be undervalued (green) or overvalued (red).
KBH’s FA Score shows that 2 FA rating(s) are green whileTMHC’s FA Score has 2 green FA rating(s).
- KBH’s FA Score: 2 green, 3 red.
- TMHC’s FA Score: 2 green, 3 red.
Short-Term Analysis
It is best to consider a short-term outlook for a ticker by using Technical Analysis (TA) indicators. We use Odds of Success as the percentage of outcomes which confirm successful trade signals in the past.
If the Odds of Success (the likelihood of the continuation of a trend) for each indicator are greater than 50%, then the generated signal is confirmed. A green percentage from 90% to 51% indicates that the ticker is in a bullish trend. A red percentage from 90% - 51% indicates that the ticker is in a bearish trend. All grey percentages are below 50% and are considered not to confirm the trend signal.
KBH’s TA Score shows that 1 TA indicator(s) are bullish while TMHC’s TA Score has 4 bullish TA indicator(s).
- KBH’s TA Score: 1 bullish, 6 bearish.
- TMHC’s TA Score: 4 bullish, 3 bearish.
Price Growth
KBH (@Homebuilding) experienced а -4.96% price change this week, while TMHC (@Homebuilding) price change was 0.00% for the same time period.
The average weekly price growth across all stocks in the @Homebuilding industry was +1.93%. For the same industry, the average monthly price growth was +3.09%, and the average quarterly price growth was -7.20%.
Reported Earning Dates
KBH is expected to report earnings on Sep 23, 2026.
TMHC is expected to report earnings on Oct 28, 2026.
Industries' Descriptions
@Homebuilding (+1.93% weekly)Homebuilding includes companies residential home construction companies, renovators and repair firms. The companies may be building single-family or multifamily homes, condominiums or mobile homes. Over the five years to 2019, the Home Builders industry is estimated to have grown at an annualized rate of 2.5% to reach $89.4 billion, (including expected growth of 2.6% in 2019), according to a study by IbisWorld. After having suffered one of its worst crises a decade ago during the last macroeconomic recession–which had much of its origins in U.S. real estate – the homebuilding industry has been recovering steadily so far. Higher disposable incomes and improving economic activity have bolstered consumers’ purchases of homes. While revenue of the Home Builders industry remains well below its prerecession high, demand growth estimates show promise.
| KBH | TMHC | KBH / TMHC | |
| Capitalization | 3.45B | 6.67B | 52% |
| EBITDA | 368M | 1.03B | 36% |
| Gain YTD | 0.252 | 23.068 | 1% |
| P/E Ratio | 13.71 | 10.80 | 127% |
| Revenue | 5.5B | 7.61B | 72% |
| Total Cash | 231M | 653M | 35% |
| Total Debt | 2B | 2.42B | 83% |
KBH | TMHC | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 32 | 48 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 9 Undervalued | 42 Fair valued | |
PROFIT vs RISK RATING 1..100 | 73 | 18 | |
SMR RATING 1..100 | 82 | 69 | |
PRICE GROWTH RATING 1..100 | 50 | 46 | |
P/E GROWTH RATING 1..100 | 12 | 17 | |
SEASONALITY SCORE 1..100 | 50 | 85 |
Tickeron ratings are formulated such that a rating of 1 designates the most successful stocks in a given industry, while a rating of 100 points to the least successful stocks for that industry.
KBH's Valuation (9) in the Homebuilding industry is somewhat better than the same rating for TMHC (42). This means that KBH’s stock grew somewhat faster than TMHC’s over the last 12 months.
TMHC's Profit vs Risk Rating (18) in the Homebuilding industry is somewhat better than the same rating for KBH (73). This means that TMHC’s stock grew somewhat faster than KBH’s over the last 12 months.
TMHC's SMR Rating (69) in the Homebuilding industry is in the same range as KBH (82). This means that TMHC’s stock grew similarly to KBH’s over the last 12 months.
TMHC's Price Growth Rating (46) in the Homebuilding industry is in the same range as KBH (50). This means that TMHC’s stock grew similarly to KBH’s over the last 12 months.
KBH's P/E Growth Rating (12) in the Homebuilding industry is in the same range as TMHC (17). This means that KBH’s stock grew similarly to TMHC’s over the last 12 months.
| KBH | TMHC | |
|---|---|---|
| RSI ODDS (%) | N/A | 2 days ago 55% |
| Stochastic ODDS (%) | 2 days ago 68% | 2 days ago 71% |
| Momentum ODDS (%) | 2 days ago 67% | 2 days ago 70% |
| MACD ODDS (%) | 2 days ago 69% | N/A |
| TrendWeek ODDS (%) | 2 days ago 69% | 2 days ago 70% |
| TrendMonth ODDS (%) | 2 days ago 69% | 2 days ago 69% |
| Advances ODDS (%) | 9 days ago 69% | 24 days ago 73% |
| Declines ODDS (%) | 14 days ago 65% | 22 days ago 61% |
| BollingerBands ODDS (%) | 2 days ago 73% | 2 days ago 60% |
| Aroon ODDS (%) | N/A | 2 days ago 77% |
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KBH and
Correlation & Price change
A.I.dvisor indicates that over the last year, KBH has been closely correlated with MTH. These tickers have moved in lockstep 88% of the time. This A.I.-generated data suggests there is a high statistical probability that if KBH jumps, then MTH could also see price increases.
TMHC and
Correlation & Price change
A.I.dvisor indicates that over the last year, TMHC has been closely correlated with MHO. These tickers have moved in lockstep 74% of the time. This A.I.-generated data suggests there is a high statistical probability that if TMHC jumps, then MHO could also see price increases.
| Ticker / NAME | Correlation To TMHC | 1D Price Change % | ||
|---|---|---|---|---|
| TMHC | 100% | N/A | ||
| MHO - TMHC | 74% Closely correlated | -0.79% | ||
| MTH - TMHC | 74% Closely correlated | -1.26% | ||
| KBH - TMHC | 68% Closely correlated | -3.34% | ||
| HOV - TMHC | 59% Loosely correlated | -1.43% | ||
| BZH - TMHC | 49% Loosely correlated | +0.03% | ||
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